Before using any of our services, website, platform or app, you should ensure that you fully understand, and can afford to undertake, the risks involved. This risk warning lists some, but not all, of the risks involved in holding, trading and using Digital Assets generally, and in using our services specifically.

You should do your own research to make sure the Stables offering is right for you. If you do not fully understand the risks, you should not use Stables or deposit funds with us.

This risk warning gives a general outline of the risks involved and cannot capture all of them. The risks below are therefore not an exhaustive list, and other significant risks may apply.

Risks change over time, and Stables will update this page from time to time as they do.

Please note that you may lose all or some of your money. Only deposit what you can afford to lose.

Stables does not provide any legal, tax or financial advice, and you are strongly advised to obtain independent legal, tax or financial advice before making any financial decision, including buying, trading, holding or using Digital Assets.

There are significant risks associated with Digital Assets, and you are solely responsible for making sure you understand them and for assessing whether they are appropriate for you. Stables does not take into account your personal circumstances, financial situation, needs or goals. Before making any financial decision, you should carefully assess your financial situation and capacity, and only use funds that you can afford to lose. Past performance is no guarantee of future results.

Interacting with Digital Assets can result in financial loss. Digital Assets are by their nature highly volatile, and the risk of loss in trading, investing in or holding them can be substantial. They are a new and evolving asset class, and how they will perform can be hard to predict.

The value of Digital Assets can be highly unpredictable, with significant price movements within short periods, and their value may not be guaranteed or backed by any government. It can be affected by unpredictable events, including the performance of world markets, protocols not performing as expected, economic indicators, interest rates, changes in taxation, foreign exchange rates, regulatory and legislative changes, technological developments and market sentiment.

Digital Assets are not traditional legal tender, and there is no guarantee that any person will agree to accept them in future. Market availability and liquidity may be limited or disrupted, and there is no guarantee that you will be able to sell or exchange your Digital Assets at any price.

The nature of Digital Assets may carry an increased risk of fraud or cyber-attack, including rollback attacks or blockchain reorganisations. Digital Asset transactions are not reversible, and erroneous transactions may result in the irreversible loss of your funds.

Digital Assets are largely unregulated in most parts of the world, and limited protection, if any, may be available to users in the event of loss. Digital Asset exchanges and service providers may not be subject to regulatory supervision.

Different jurisdictions may treat Digital Assets differently, and the cross-border nature of blockchains and Digital Assets may make them subject to the laws of several jurisdictions. You must always make sure that your use of any Digital Asset complies with all applicable laws.

Different jurisdictions may apply specific tax rules to Digital Assets. You must make sure you understand the tax implications of your activities and comply with all reporting and payment obligations that apply to you.

Blockchain technologies are exposed to a wide variety of risks, from malicious attacks to technical difficulties and failures, which may result in the loss of funds transacted or held on a blockchain, higher transaction costs or delays in execution.

1. Stablecoins can lose their peg
A Stablecoin is designed to hold a stable value against a Fiat Currency, but it can lose that link, briefly or permanently, if its issuer's reserves fall short, its issuer fails or stops redemptions, a regulator intervenes, or the market loses confidence. Stables does not issue Stablecoins and does not guarantee their value or that they can be redeemed. If a Stablecoin you hold or receive through Stables loses its peg, the Fiat Currency value of your balance can fall, and you may not be able to convert it at the value you expected.

2. Exchange rates move
Many Transactions convert between currencies, or between a Fiat Currency and a Stablecoin. The amount a recipient receives can differ from what you expected if a rate changes before settlement, a quote expires, or a receiving bank or intermediary deducts its own fees or applies its own rate. Stables does not guarantee any rate beyond the validity period of a quote.

3. Counterparty risk and third-party providers
Counterparty risk is the risk that the other party to a transaction does not meet its obligations. Stables uses a number of counterparties and does not directly control them. Stables, or a third party, holds and secures funds. If Stables or the third party becomes insolvent, or suffers a hack or other cyber security event, your funds may be at risk and you may lose some or all of them. Stables performs due diligence on providers before it uses them and reviews them periodically, but cannot guarantee that a provider will not suffer a breach, lose assets or fail to return them.

4. Fraud and security risks to customers
Fraud and security risks include unauthorised access to your account, theft of your identity and misuse of your funds. Identification documents may be stolen and used to open or operate an account, which can lead to fraudulent accounts or unauthorised transactions. Keep your identification documents safe, never share passwords, and secure every device you use to access Stables. Stables carries out identity checks on all customers and monitors transactions and account behaviour to help detect suspicious activity. If you become aware of an unauthorised transaction on your account, tell us straight away.

5. Market risk
Market risk is the risk of losses caused by adverse price movements, such as changes in share or commodity prices, interest rates or foreign exchange rates. Holding any asset class carries some risk, and Stables cannot control external economic conditions or other markets, which can be affected by political, economic, social and technological shocks. The value of Digital Assets changes constantly and may fall very significantly. Unlike government-issued legal tender, Digital Assets are backed by technology and trust, and no central bank or other authority can step in to protect their value in a crisis. You should not hold more value in Digital Assets than you can afford to lose.

6. Insolvency risk
There is a risk that Stables, or a provider it uses, becomes insolvent and cannot continue to provide services. Stables holds client funds only while a payment is being processed, except prefunded balances, which are held in segregated client wallets, separately from Stables' own funds. If Stables or a provider holding funds becomes insolvent, the return of those funds may be delayed and you may not recover them in full.

7. Tax
Buying, selling, holding and paying with Digital Assets can have tax consequences that differ between jurisdictions and are still developing. We recommend you get independent tax advice before you use our services.

8. Regulatory and compliance risk
Regulatory risk is the risk that a change in laws, regulations or their interpretation causes you loss. Compliance risk is the risk that you are found to have breached a law or regulation. The regulatory status of Stablecoins is unclear or unsettled in many jurisdictions, and it is difficult to predict how governments will regulate them or change existing rules. Stables may stop offering services for any Stablecoin, or restrict use of its services in or from certain jurisdictions, if government action makes it unlawful or commercially undesirable to continue.

9. Technology risk
Technology failures, security incidents, cyber-attacks, password theft and service outages can disrupt any business. We may suffer technical difficulties that prevent access to your account or delay your transactions. Security is a priority for Stables, but we, and third parties with authorised access to or control over assets, may still suffer attacks or breaches that compromise those assets.

10. Smart contract risk
A smart contract is code on a blockchain that executes an agreement automatically. A bug in a smart contract can cause a token to lose its value, and an attacker can exploit a bug to take assets. Stables asks the providers it works with to confirm that their smart contracts have been audited. An audit reduces, but does not remove, the risk of a bug or exploit.

11. Payments can be held for compliance review
Stables and its providers must check payments for fraud, sanctions and financial crime. A payment may be held, delayed, returned or refused while it is reviewed, or if a request for information is not answered in full. Providers may also hold funds if they consider the fraud or request-for-information rate on an account too high. Stables cannot always tell you why a payment is held.